Performance Targets and Public Service Improvement

Theories of rational planning suggest that organizational performanceimproves if targets for future achievements are set. We testthis proposition using panel data for 147 English local educationauthorities between 1998 and 2003. The dependent variables inthe analysis are exam results for school pupils. We find that,controlling for other variables, the extent of performance improvementis influenced positively by the presence of a target. Thus,the results are consistent with the view that clear and quantifiedstrategic priorities lead to better organizational outcomes.